Sunnova Energy gets $100 million delayed-draw revolving facility

By Wendy Van Sickle

Columbus, Ohio, Sept. 12 – Sunnova Energy Corp. entered into a credit agreement for a secured warehouse delayed-draw revolving loan facility with committed capital of $100 million as of the closing date and with a maximum facility amount of $150 million, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility matures on Nov. 21, 2022.

The facility is non-recourse to the company and is secured by net cash flows from power purchase agreements and leases available to the borrower after distributions to tax equity investors and payment of certain operating, maintenance and other expenses.

Sunnova guarantees the performance of certain affiliates who manage the collateral related to the credit facility as well as certain indemnity and repurchase obligations.

The facility has an advance rate equal to about 60% of the value of the solar projects in the portfolio that have not yet begun construction, and 80% of the value of the solar projects that have reached substantial completion.

The loans were issued without any original issue discount.

Borrowings are made in class A loans and class B loans.

The loans bear interest at a rate per annum equal to Libor or a Base Rate plus a margin of between 290 basis points and 430 bps, which varies based on criteria including whether the availability period has expired (which is expected to occur on May 20, 2022); whether a takeout transaction has occurred in the last 18 months; and the ratio of class A loans to class B loans outstanding at such time.

Sunnova is a Houston-based solar energy company.

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